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Showing contexts for: PUNE in Indore Development Authority vs Manoharlal And Ors. Etc. on 6 March, 2020Matching Fragments
ARUN MISHRA, J.
1. The correct interpretation of Section 24 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short, 'the Act of 2013'), is the subject matter of reference to this five Judge Bench of this Court.
2. A three Judge Bench of this Court in Pune Municipal Corporation & Anr v Harakchand Misrimal Solanki & Ors 1, interpreted Section 24 of the Act of 2013. The order reported as Yogesh Neema & Ors v State of Madhya Pradesh2, a two-judge Bench, however doubted the decision in Sree Balaji Nagar Residents Association v State of Tamil Nadu 3 (which had followed Pune Municipal Corporation (supra) and also held that Section 24 (2) of the Act of 2013 does not exclude any period during which the land acquisition proceeding might have remained stayed on account of stay or injunction granted by any court) and referred the issue to a larger Bench. Later, in another appeal (arising out of S.L.P. (C) No.2131 of 2016 (Indore Development Authority v Shailendra (dead) through Lrs. & Ors.4) the matter was referred to a larger Bench on 7.12.2017; the Court noticed that:
3. The Court noticed that the reference to a larger Bench was pending, and had been made in Yogesh Neema (supra). The Court also felt that several other issues arose which it outlined, but were not considered in Pune Municipal Corporation (supra). The Court therefore, stated that the matter should be considered by a larger Bench and referred the case to Hon’ble the Chief Justice of India for appropriate orders. Indore Development Authority v Shailendra (hereafter, “IDA v Shailendra”) a Bench of three Judges was of the view that the judgment in Pune Municipal Corporation (supra) did not consider several aspects relating to the interpretation of Section 24 of the Act of 2013. Since Pune Municipal Corporation (supra) was a judgment by a Bench of coordinate strength, two learned judges in IDA v Shailendra opined prima facie that decision appeared to be per incuriam.
33.”
40. It was argued that the conclusion in Pune Municipal Corporation (supra) that deposit of the amount of compensation in the Government treasury cannot amount to the said sum (amount of compensation) “paid” to the landowners or persons interested. This view was taken without dwelling on the legal connotation of the expression “paid” in Section 24(2). In the process, it has also not taken into account the binding law as held in Dalmia's case and Benares State Bank's case. Though Section 34 of the LA Act was mentioned in passing para 16, however it has not at all been considered. It is a very crucial provision, which deals with the consequences of compensation not having been 27 (1964) 53 ITR 83 [AIR 1964 SC 1866] deposited. Further, submit counsel, the matter relates to payment of compensation from out of Government funds. Handling of Government funds has to be strictly in accordance with the Standing Orders issued by the States. The effect of those Standing Orders has also not been considered in the judgment in Pune Municipal Corporation (supra). The said judgment, therefore, having been rendered without taking into consideration the aforesaid judgments, Section 34 of the LA Act and the Standing Orders is, in the submission of the counsel, per incuriam.
74. Learned counsel stressed that there are no vested rights created in the State in any case till compensation has been paid and possession has been taken. The Act of 2013 is a beneficial legislation and a radical departure from the previous unjust and oppressive regime. It intends to confer significant benefits to the landowners and makes the exercise of the power of eminent domain compatible with our constitutional values. It ought to therefore be given an interpretation which favours the landowners. Finally, he argued that the decision in Indore Development Authority (supra) erroneously upset a consistent line of decisions which began with Pune Municipal Corporation (supra). Subsequent decisions of this Court following Pune Municipal Corporation (supra) have also considered a host of arguments/issues and there is no compelling 60Naga People’s Movement of Human Rights vs. Union of India (1998) 2 SCC 109 (5 Judges); R.S. Nayak v A.R. Antulay 1984 (2) SCC 183; and Life Insurance Corporation v D. J. Bahadur 1981 (1) SCC 315.